Income Tax (Earnings and Pensions) Act 2003 section 323

Long service awards

Section 323 provides an income tax exemption for long service awards given to employees who have completed at least 20 years' service, provided the award meets certain conditions regarding its form and value.

• Awards marking 20 or more years' service with the same employer are exempt from income tax up to £50 per year of service recognised by the award
• The award must take the form of tangible moveable property, shares in the employer's company or group, or other non-cash benefits — but not cash, cash vouchers, credit-tokens, securities, shares outside the employer's group, or interests in securities or shares
• The exemption does not apply if the employee has already received another long service award from the same employer within the previous 10 years
• Service with successor, predecessor or group companies counts as service with the same employer, where a group means a company and its 51% subsidiaries